REPUBLIC ACTS

Section 1. The
Philippine Charity Sweepstakes Office. — The Philippine Charity
Sweepstakes Office hereinafter designated the Office, shall have the
general powers conferred in section thirteen of Act Numbered One
thousand four hundred fifty-nine. It shall have a Board of Directors,
hereinafter designated the Board, composed of five members who shall be
appointed by the President of the Philippines with the consent of the
Commission on Appointments and whose compensation and term of office
shall be fixed by the President.cralaw

Sec. 2. General Manager and personnel. — The
General Manager shall have the direction and control of the Office in
all matters which are not specifically reserved for action by the
Board. Subject to the approval of the Board of Directors, he shall also
appoint the personnel of the Office, except the Auditor and the
personnel of the Office of the Auditor who shall be appointed by the
Auditor General.cralaw

Sec. 3. Operating expenses. — The operating
expenses of the Office shall be paid from its receipts.

Sec. 4. Holding of sweepstakes. — The Office
shall hold charity horse race sweepstakes under such regulations as
shall be promulgated by the Board in accordance with Republic Act
Numbered Three hundred and nine; Provided, however, That when the
holding of a sweepstakes race to determine prizes is impossible due to
war, public calamity, or other unforeseen or fortuitous event or when
there is no sufficient number of horses to determine the major prizes,
the Board of Directors may determine the procedure to be followed in
the distribution of prizes in the most just, equitable and expeditious
manner. The horse races and the sale of tickets in the said sweepstakes
shall be exempt from all taxes, except that each ticket shall bear a
twelve-centavo internal revenue stamp and that from the total prize
fund as provided herein from the proceeds of the sale of tickets there
shall be deducted an amount equivalent to one and one-half per centum
of such total prize fund, which shall be paid to the Bureau of Internal
Revenue not later than ten days after each sweepstakes in lieu of the
income tax heretofore collected from sweepstakes prize winners:
Provided, however, That any prizes that may be paid out from the
resulting prize fund, after said one and one half per centum has been
deducted, shall be exempt from income tax. The tickets shall be printed
by the Government and shall be considered government securities for the
purposes of penalizing forgery or alteration.cralaw

Sec. 5. Races entries. — The races to be held
under this Act shall be of five kinds: (a) those for horses of less
than fifty-four inches in height: (b) those for horses of fifty-four
inches or more but less than fifty-six inches in height: (c) those for
horses of fifty six inches or more but less than fifty-eight inches in
height; (d) those for horses of fifty-eight inches or more but less
than sixty inches in height; and (e) those for horses of sixty inches
or more in height. Only native horses may participate in any
sweepstakes race. A horse intended for races under this Act shall be
registered, within thirty days after its birth, with the treasurer or
the municipality in the Philippines where it was born. Another
registration with the same office should be made within one year after
its birth wherein all identification data, such brand, sex, color and
cowlicks shall be stated. Three years after this Act takes effect not
horse shall be allowed to participate in any race under this Act unless
so registered.

Only horses that have not run for a prize previously in any race in the
Philippines may participate in any sweepstakes race under this Act. All
horses participating in any sweepstakes race shall be registered with
the Philippine Charity Sweepstakes Office at least thirty days before
the holding of the race. No horse owner shall be permitted to register
more than one entry that may participate in any sweepstakes race.cralaw

Sec. 6. Disposal of gross receipts. — The gross
receipts from the sale of tickets for the races held under this Act
shall be disposed of as follows:

(a) Ten per centum shall be applied to the payment
of the operating expenses of the Office. After deducting said expenses
and a reserve fund has been set aside which shall in no case exceed one
million pesos at any given time for the purchase of real estate and
machineries for its own use; and/or for improvement of the same and/or
to meet future losses and contingent liabilities, the balance remaining
plus the proceeds from the races after deducting the expenses of the
draw and races in sweepstakes day shall be added to the portion
disposed of under paragraph (c) hereof.cralaw

(b) Fifty-eight and one half per centum shall be
applied to the payment of the prizes, including those for the owners
and jockeys of the winning horses. Each of the three main prizes for
horses shall be ten per cent of each of the three main prizes for
winning tickets, respectively,

(c) Six and one half per centum shall be allotted to
the provinces and cities in the Philippines, excepting the City of
Manila, in proportion to the collections therein made and under such
rules and regulations as the Board of Directors may prescribe, the
amounts so allotted to be expended by the corresponding provincial and
city governments for the maintenance of provincial, city and municipal
hospitals, and for other health, social welfare, and charitable work in
their respective jurisdiction.

(d) The remaining twenty-five per centum together
with the receipts for the holding of the sweepstakes races and the
proceeds realized from the holding or lotteries as hereinafter
provided, shall be appointed, except as otherwise provided herein, by
the Board of Directors, with the approval of the President of the
Philippines and shall be paid over by said Board among and to
institutions or organizations engaged in charitable, relief, and health
work or work for the improvement of the conditions of the indigent
Filipino masses in this country or abroad. Nod from the proceeds of the
sweepstakes herein authorized shall be given to any charitable
organization not granted a special charter by law, unless it shall have
first complied with the rules and regulations issued by the Board of
Directors, approved by the President of the Philippines, governing the
disposition of the sweepstakes fund and unless provision is contained
in its by-laws, to the effect that any property acquired or which it
may acquire from the funds given to it under this act shall not be sold
or otherwise disposed of without the approval of the President of the
Philippines, and that in the event of its dissolution of such
properties shall be transferred to and shall automatically become the
property of the Philippine Government.cralaw

The funds given to any institution by virtue of this section shall be
used for no other purpose than those authorized by the Board of
Directors.cralaw

Sec. 7. Annual report of the Board. — The Board
shall submit, during the month of July of each year, a report to the
President of the Philippines and to both Houses of Congress on the
activities of the Office.cralaw

Sec. 8. Acts penalized. — The following shall be
punished by imprisonment for not less than one month and not more than
three years:

(a) Any person who, without being a duly authorized
agent of the Office, sells tickets of the Office, or, being such agent,
sells tickets, fractions or coupons thereof not issued by the Office,
representing or tending to represent an interest in tickets issued by
the Office.cralaw

(b) Any person who sells tickets issued by the
Office at a price greater than the price stated on the ticket.cralaw

(c) Any officer or employee of a hospital or other
charitable or hygienic institution or organization who uses funds
obtained from the Office under this Act for purposes other than those
herein authorized.cralaw

Sec. 9. Once a month during the months when there
are no sweepstakes draws and races, the Philippine Charity Sweepstakes
Office is authorized to hold lotteries.cralaw

Section 10. The Board of Directors of the
Sweepstakes, with the approval of the President of the Philippines,
shall promulgate rules and regulations for the holding of lotteries;
shall fix the number and price of the tickets for the same and the
number of tickets usually given gratis to the ticket vendors; fix the
number and amount of the prizes; fix the date when the sale of tickets
shall close; and designate the dates and place or places where such
lotteries shall be held.cralaw

Section 11. Laws affected. — Act Numbered Four
thousand one hundred thirty, as amended by Commonwealth Acts Numbered
Three hundred one and Five hundred forty- six and by Republic Acts
Numbered Seventy-two and Five hundred seventy-four, and all other Acts
or parts thereof, except Commonwealth Act Numbered Five hundred
ninety-five and Republic Act Numbered Six hundred twenty, inconsistent
with the provisions of this Act, are hereby repealed.

Section 12. Date of effectivity. — This Act shall
take effect upon its approval.cralaw